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Tax Deduction Consulting: Laptop Computer Deduction Mitchell SD

A laptop is a personal computer. It is certainly more portable and therefore lends itself more easily to many business purposes, but it is still a computer and therefore is subject to the same rules as a regular desk top personal computer.

Mr. Todd M. Klein (RFC®), CFP
(605) 348-2433
1241 E St. Joseph St
Rapid City, SD
Company
Fintegra, LLC
Qualifications
Years of Experience: 19
Membership
IARFC
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Education Plan

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Liberty Tax Service
(866) 871-1040
1943 Dakota Ave S
Huron, SD

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Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

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Liberty Tax Service
(866) 871-1040
532 E Anamosa St
Rapid City, SD

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H&R Block Inside Sears At Rushmore Mall
(605) 399-2114
2200 N MAPLE AVESW Suite 8
RAPID CITY, SD

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Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

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H&R Block
(605) 332-8081
4601 E ARROWHEAD PKWY STE 101
SIOUX FALLS, SD

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Liberty Tax Service
(866) 871-1040
633 E Sioux Ave # 6
Pierre, SD

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H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

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Carlon & Millar Prof Llc
(605) 996-6850
201 E 4th Ave
Mitchell, SD
 
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Tax Deduction Consulting: Laptop Computer Deduction

Laptop Computer Tax Deduction

Is there a laptop computer tax deduction? Do you have to be operating a business with you laptop in order to claim depreciation and related equipment costs? These are common tax questions about a laptop.

A laptop is a personal computer. It is certainly more portable and therefore lends itself more easily to many business purposes, but it is still a computer and therefore is subject to the same rules as a regular desk top personal computer. One advantage of a laptop is that it is much easier to convince the IRS that it is for business and not pleasure. What are the rules for claiming the laptop computer tax deduction?

First of all, let's get the bad news over with. If your main purpose for your computer is to play games, send emails to your mother, or chat with your friends, there is no tax deduction that will apply. The only time a computer, laptop or otherwise, results in a tax deduction is when it has some income producing purpose. This business purpose must meet two conditions. First, it must be required by your employer as a condition of employment. Second, it must be used at the convenience of your employer.

When these conditions are met, the cost of the computer and related hardware can be taken as a tax deduction. If you use it for the employer's convenience more than 50% of the time, you can use either an accelerated depreciation method spreading the cost over 5 years or make a Code Section 179 election and take the entire deduction in the year the equipment was purchased. If the use is less than 50%, you must use straight line depreciation and can not use Section 179. The deduction is a miscellaneous itemized deduction and subject to the 2% of Adjusted Gross Income reduction.

If you use the computer on your own for any income producing activity such as tracking online investments or even preparing tax reports, you can claim operating expenses and depreciation also. In this situation, only the percentage of use tha...

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